Insisting on Quality

When you invest in companies
for the long haul, buying quality is
critical. Sure, you might make some fast money buying a dicey company
on a hot streak, but it’s just
as easy to lose most if not
all of your original investment if the company runs into trouble.
Quality growth companies make for a more relaxed approach to
investing—not only can you assume less risk to earn your
return, but you spend less time studying stocks because their past
performance can be a good indication of what you can expect in the
future.

Just as with consumer products, the quality of a company
isn’t just about numbers. Quality can be the number
of skilled executives on the management team, the steady introduction
of successful new products, revamping older products for new uses,
dealing with problems that arise, and making the most of
opportunities.